Ipek Ozkardeskaya
Swissquote Bank Ltd
Risk appetite is better this Monday morning than it was last Friday when the world was bracing for the Iranian retaliation on Israel. Iran fired more than 300 drones and missiles on Israel on Saturday night, but only a small number reached Israel, limiting damages. Oil is lower but base metals including copper, iron and aluminum surged after the US and the UK decided to impose sanctions on Russian supplies.
In the FX, the US dollar strengthens on the back of a severe deterioration in Federal Reserve (Fed) rate cut expectations following strong jobs and inflation data, and the dollar outlook remains comfortably bullish. But rate cut expectations in Europe remain intact bringing parity back on the table for the EURUSD.
In equities, the S&P500 posted its worst weekly performance since late October 2023. Mixed bank earnings didn’t help improve mood on Friday. This week, earnings season gains momentum with the rest of the US big banks, Netflix and TSM due to announce their Q1 results. The expectation is a 3.8% annual growth in S&P500 companies’ earnings per share in the Q1, while profits for the Magnificent Seven are expected to have risen around 38%.
In cryptocurrencies, Bitcoin halving is expected to happen this week.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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